Cooperatives and Small and Medium Enterprises Minister Anak Agung Gede Ngurah Puspayoga has said that the government will pay special attention to developing medium-sized businesses in preparation for the competition expected to come with the ASEAN Economic Community (AEC).

The minister said ASEAN member countries needed to cooperate closely in developing medium-sized business. “Only with synergy can medium-sized business owners succeed as we enter the upcoming ASEAN Economic Community,” said Puspayoga on Wednesday as quoted by tempo.co.

In order to improve the competitiveness of medium-sized businesses, Puspayoga continued, the government was providing support through a number of channels including by easing access to financing.

“Interest rates on loans that used to be 22 percent have now been lowered to 12 percent, and by 2016, they will be 9 percent,” said Puspayoga.

Puspayoga spoke about five key strategies for developing medium-sized businesses in ASEAN: increasing productivity by using technology and innovation; increasing wider access to financing; increasing market access by boosting international market share; drafting policies that are conducive to business and entrepreneurship; and human-resources capacity building.

The ASEAN Economic Community (AEC) will be effective from December. (liz/bbn)(+)